Olympic Steel Announces EZ-Dumper® Asset Acquisition
August 05, 2019 04:15 PM Eastern Time
Deal expands company’s branded metal products offerings
Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced that it has acquired certain assets related to the manufacturing of the EZ-Dumper® hydraulic dump inserts. Terms of the purchase were not disclosed. While the EZ-Dumper acquisition will not be material to Olympic Steel’s financial performance, the company does believe it will be incrementally positive to EBITDA. This represents Olympic Steel’s second branded metal products acquisition in the past seven months, following the McCullough Industries transaction in January 2019.
EZ-Dumper steel and stainless steel dump inserts for pickup truck and service truck beds are sold through a network of more than 100 dealers across the United States and Canada.
“Continuing to expand in the metal-intensive branded products space is a key element of our growth and diversification strategy, and the EZ-Dumper asset acquisition represents our second such acquisition,” said Richard T. Marabito, Olympic Steel Chief Executive Officer. “We believe combining our strengths in raw material supply and metal processing with EZ-Dumper’s product quality and brand recognition will provide a consistent and growing EBITDA stream for our organization. We are committed to actively evaluating additional opportunities to add to our metal-intensive branded products portfolio.”
The EZ-Dumper brand, which was introduced to the market in 1972, is nationally recognized and its portfolio of insert products is known for quality and innovation. Built from heavy-gauge materials and backed by a structural steel frame, the dump inserts can hold and unload up to 6,000 pounds of material for construction, landscaping and home renovation applications. Made to bolt directly into most full-size pickup trucks, or custom-made for service and utility body vehicles, each insert lowers and dumps utilizing a 12-volt hydraulic pump that plugs directly into the truck battery. For more information, visit http://ez-dumper.com/.
EZ-Dumper will be included in Olympic Steel’s Carbon Flat Products segment, and its manufacturing assets and employees will be integrated into Olympic Steel’s facility in Chambersburg, Pennsylvania, which is near EZ-Dumper’s current manufacturing facility in Waynesboro, Pennsylvania.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “may,” “will,” “anticipate,” “should,” “intend,” “expect,” “believe,” “estimate,” “project,” “plan,” “potential,” and “continue,” as well as the negative of these terms or similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to successfully integrate McCullough Industries and EZ-Dumper® into our business and risks inherent with the McCullough Industries and EZ-Dumper acquisitions in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe. We undertake no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2018 and in our reports on Forms 10-Q and 8-K.
About Olympic Steel
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel, aluminum, tin plate, and metal-intensive branded products. The Company’s CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel operates from 30 facilities in North America.
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Richard A. Manson
Chief Financial Officer